Dividend payments; notice; content

Sec. 1.5. (a) A domestic insurer that is a member of an insurance holding company system may not pay a dividend unless the insurer notifies the department of the dividend and the department receives the notice from the insurer:

(1) not more than five (5) business days after the declaration of the dividend or distribution; and

(2) at least ten (10) days before the payment of the dividend or distribution.

(b) A notice provided by an insurer under subsection (a) must contain information indicating that the surplus of the insurer as regards policyholders will be:

(1) reasonable in relation to the outstanding liabilities of the insurer; and

(2) adequate to the financial needs of the insurer;

following the payment of the dividend.

(c) After receiving a notice from an insurer under this section, the department shall promptly consider the information set forth in the notice under subsection (b). In the department's consideration of the information, the department shall apply the factors set forth in section 4(f) of this chapter.

As added by P.L.130-1994, SEC.29 and P.L.116-1994, SEC.39.